The data center boom is colliding with the midterms
· Business Insider
Will Waldron/Albany Times Union via Getty Images
- The majority of competitive House districts have data centers either planned or under construction.
- Neither party knows how to handle their political fallout heading into the midterms.
- Data centers are shaping up to be a yearslong political slog for both parties.
More than 200 data centers are going up in dozens of competitive House districts — and neither party knows how to handle their political fallout heading into the midterms.
Visit moryak.biz for more information.
The energy-hungry computing infrastructure being built to meet the explosive demand for artificial intelligence has sparked opposition to rising electric bills, water consumption, use of farmland and influence of the tech industry. That stew of frustration has made data centers the target of campaign ads and a populist fervor that's toppled local elected leaders.
It has also become a rogue element in the races that will decide which party controls the House: The majority of competitive districts — 40 out of 69 — have data centers either planned or under construction, according to an analysis of Data Center Map data by POLITICO, which like Business Insider, is part of the Axel Springer Global Reporters Network.
Even though Republicans represent most of those competitive districts, data centers are shaping up to be a yearslong political slog for both parties. Some 1,500 of them are planned or being built in 232 congressional districts, with a nearly even partisan split. Interviews with and statements from more than 20 congressional candidates, political strategists, and activists make clear that while individual campaigns are trying to shape their positions, broader party messaging is essentially nonexistent.
(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();"There's more political signs against AI in our region than for candidates in the upcoming races," said Democratic Rep. Marcy Kaptur during a hearing this spring. Kaptur is fighting to keep her seat in Ohio's 9th District, where Aligned Data Centers is building a data center that would be used for AI, cloud computing and more. "The public opposition that is arising, it's spontaneous combustion coming up from the grassroots."
The industry's exponential growth means that lawmakers from all parts of the country are now exposed to it, from the dense data center developments in the Virginia suburbs to the heart of the industrial Midwest.
Virginia is the historical epicenter of data center development in the US.Lexi Critchett/Bloomberg via Getty Images
Lawmakers are taking scattershot approaches that range from opposing data centers altogether to embracing them in the name of economic development and national security. Some are eschewing the issue as a local matter, while the White House and Congress grapple with how to regulate the data center buildout.
The White House announced a non-binding agreement in March with technology executives who pledged that their companies would provide their own power for data centers as a way of limiting the economic blow to everyday consumers. Lawmakers have also introduced a handful of bills with similar objectives, from GOP Missouri Sen. Josh Hawley's GRID Act to Democratic Virginia Rep. Suhas Subramanyam's Data Infrastructure Risk Reduction Act to a plan by progressives Sen. Bernie Sanders of Vermont and Rep. Alexandria Ocasio-Cortez of New York to enact a federal moratorium on data center construction.
"People should not want their member of Congress deciding local zoning decisions," said Rep. Tom Barrett, a Republican whose Michigan district both parties' congressional arms are targeting — and where there are six data centers operating and six more planned. "It would be a dangerous precedent."
(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();Data center proposals have spurred marathon city council meetings, scores of bills in state legislatures and ballot measure campaigns to ban their construction in California, Michigan, Nevada, Wisconsin, Maryland, Utah and Ohio, where residents are pushing to put a constitutional amendment on the ballot in November.
"There's not one big national message on this specific thing," said one Democratic strategist working on congressional races, who was granted anonymity to speak candidly. "But in certain districts, data centers are going to be a major, major player."
Asked about its strategy on data centers, Democratic Congressional Campaign Committee spokesperson Viet Shelton said, "While House Republicans fall in line behind failed policies that spike prices out of control, Democratic candidates and Frontliners are fighting for common sense solutions to provide meaningful price relief, encourage economic growth, and meet the unique needs of their communities." The National Republican Congressional Committee declined to comment for this report.
Although they're motivating politics more than before, the number of data centers has been steadily growing for decades. They have spread in lockstep with the growth of the internet, and more than 2,500 U.S. data center facilities are operating across 373 congressional districts, according to POLITICO's analysis. Virginia, Texas, and California contain the greatest number of data centers, and more than one in three Americans live within 5 miles of one that's already operating. In five states, most residents live within 5 miles of one.
Investors plan to spend hundreds of billions of dollars building new data centers, which would push utilities across the country to make massive electric grid upgrades to feed the facilities — expenses that can be passed to everyone who consumes power. Massive "hyperscale" facilities that are owned by major tech companies demand the most power. And though hyperscalers make up a relatively small portion of the facilities now operating, the number in development would increase their count by 74%.
Despite the demand for data centers, there are examples of proposals that are falling through due to community opposition or shifting business calculations. Just the announcement of a data center can be enough to pressure elected officials to act.
In Wisconsin, for example, four proposals have been canceled and one paused following local pushback, according to Healthy Climate Wisconsin, a nonpartisan public health nonprofit whose work includes raising awareness of data centers' environmental health risks.
"We've been hearing from policymakers across the state that data centers are the top issue they're hearing from their community, as far as concerns," said Abby Novinska-Lois, the organization's executive director. "Data centers will definitely be a factor in upcoming races in Wisconsin, and I would say they're a factor already for those who are holding office in their decisionmaking."
How candidates are reacting
Among 69 House districts expected to be competitive, nearly all already have at least one data center, and most have more on the way.
POLITICO asked the 10 House members in battleground districts with the most upcoming data centers what their stance was on data center regulations. Five of eight Republican incumbents, and one of two Democrats, responded.
(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();Their answers illustrate an awareness that voters are in no mood to greenlight anything that will send electricity bills higher. Even the incumbents most supportive of data centers caveat their support with the need to protect consumers.
Iowa Rep. Zach Nunn — who represents a district with 31 data centers planned and 33 already operating, more data centers than any other Republican incumbent in a competitive race — said in a statement that his state is a "model for how workforce development and AI leadership can work hand in hand."
"But I also hear from Iowans who don't want higher utility bills or sweetheart deals for out-of-state tech companies," he said. "And they're right to be cautious."
The tech lobby has shaped up to be a key player in the midterm races. Candidates who are too critical — particularly incumbents — run the risk of losing support from the tech lobby or attracting fierce opposition.
"They're between a rock and a hard place," said Texas-based GOP consultant Brendan Steinhauser, whose clients have included Sen. John Cornyn and Rep. Dan Crenshaw. "Politically, it's not a very smart move to come out and be seen as too close to big tech or doing the bidding of Big Tech, but a lot of the money is flying to them through that."
The advertising so far this election cycle backs that up. All of the congressional and gubernatorial ads that mention data centers, as identified by the political advertising tracker AdImpact,are critical of the facilities. Most attack Republicans for supporting them.
Over an image of cables running from computer equipment, one such ad from the progressive Priorities USA PAC says: "Driven by higher demand for electricity from AI data centers, residents can expect to see a 3% increase in their electric bill. But Pennsylvania's Representative Scott Perry somehow believes we're winning the war on high prices."
Perry, a Republican, told POLITICO he does not support data centers in his district, which includes the cities of Harrisburg and York.
"I don't think it's the best place for it, quite honestly," he said. "Pennsylvania's got a lot of energy in the ground, and the data center to me should be right at this point of energy production and generation, which is kind of in the more rural parts."
Ads from Democrats, including Maryland Gov. Wes Moore, highlight their own records of regulating data centers. Democrats scored some early wins on energy affordability messaging last November as their candidates soared to victory in Virginia and Georgia, promising to place guardrails on data center growth and ensure they pay their share of power costs.
The League of Conservation Voters, an environmental group, launched similar ads targeting Virginia's state legislature incumbents and their data center interests in 2025, and those races were later won by candidates who positioned themselves against data centers. Sara Schreiber, the group's senior vice president for campaigns, said such advertisements were a "powerful" tool for driving home the connection between data centers and affordability.
"There is continuing concern around folks' rising electricity costs," Schreiber said. "They want to support candidates who are showing that they understand, they want to fight against it and have a plan to do so."
Still, Democrats up and down the ticket are open to their construction.
Pennsylvania Gov. Josh Shapiro announced requirements on May 27 for data center developments — including a plan for covering energy costs — but not a moratorium. Paige Cognetti, the mayor of Scranton, Pennsylvania, who is running to unseat Republican Rep. Rob Bresnahan, has said "we are ready for development," but that data centers should be on former industrial sites and not areas that could be used for housing or parks.
The Data Center Coalition, an industry association, has been supportive of the White House's "ratepayer protection pledge" and other policies that require data centers to cover more utility costs. The coalition's senior director of federal affairs, Cy McNeill, said that they're working to educate representatives as constituents increasingly voice concerns about water usage and energy prices.
"How do we provide the facts to the office, or to the congresswoman or congressman, to kind of help educate constituents on this?" McNeill said. "If we actually take a step back, look at the facts, I think the story is a lot different."
Environmental activists say consumer protections don't go far enough. While elected officials who are open to data center construction often focus on keeping energy costs down, activists are worried about other potential risks, too, including water quality and air pollution.
One of the most prominent disputes is out of Memphis, Tennessee, where residents are fighting Elon Musk's expanding xAI data center, the Colossus supercomputer. KeShaun Pearson, the executive director of Memphis Community Against Pollution, said federal action such as the ratepayer protection pledge still allows developers to use polluting energy sources without acknowledging environmental impacts.
The xAI facility, for example, burns enough methane gas to power 280,000 homes — motivating the Memphis organization to take the monitoring of pollution and health risks into their own hands as they push elected officials to act.
"We surely don't want data centers that are directly causing us health issues," Pearson said. "I think our politicians have to understand that and have to move accordingly."
Pavan Acharya and Sean McMinn contributed to this report.
Methodology
The data center locations used for this analysis were based on a combination of Data Center Map, geocod.io and public sources. POLITICO used automation and manual reviews to verify exact coordinates and district assignments, checking against U.S. Census Bureau files.
Data Center Map's data is as of April 30. Data centers included as "upcoming" are those that DCM labels as planned or under construction. The dataset is not an exhaustive list; it is based on voluntary data submissions and collections from providers or other sources. Government-owned data centers are not included.
Some data center companies operate within the same colocation building and lease space to other companies; those cases count as one facility. Facilities that are a part of a campus or multi-tenant building count individually. Cases where the exact facilities within a campus or multi-tenant building are unknown are counted as one data center.
Some data center facility addresses are approximate. In those cases, provided ZIP codes are used to determine congressional districts. In cases where a ZIP code overlapped with more than one district, or if no location information is disclosed for the facility, data centers are excluded from the district-level analysis. The population living within a five mile radius of a data center is determined using only facilities with exact addresses or intersections.
The number of data centers in midterm races account for newly redrawn boundaries finalized in Alabama, California, Florida, Louisiana, Missouri, North Carolina, Ohio, Tennessee, Texas and Utah. Competitive races are based on targets from the Democratic Congressional Campaign Committee and the National Republican Congressional Committee, as well as POLITICO's own reporting.
The Axel Springer Global Reporters Network harnesses the resources of the company's newsrooms to publish ambitious scoops, investigations, interviews, opinion pieces and analysis. It allows journalists — including those from POLITICO, Business Insider, WELT, BILD, Onet and Fakt — to collaborate on major stories for an international audience of hundreds of millions across platforms: online, print, TV and audio.
Read the original article on Business Insider